"Meta Platforms just posted record results while generating massive free cash flow, setting the stage for potential dividend growth as the company balances aggressive AI investments with returning cash to investors. In Q4, Meta ( META) posted earnings of $8.88 per share on revenue of $59.9 billion, handily beating analyst expectations of $8.23 per share and $58.59 billion in sales. Revenue jumped 24% year-over-year, with advertising accounting for nearly 97% of the total haul at $58.1 billion."
"But here's what really matters: Meta generated $14.1 billion in free cash flow during the quarter while sitting on $81.6 billion in cash and marketable securities against $58.7 billion in debt. That's a fortress balance sheet by any measure, and with the company expecting operating income growth in 2026 despite massive infrastructure spending, there's room for Meta to reward shareholders through dividend increases."
"Meta's free cash flow is forecast to narrow from $52.1 billion in 2024 to $10.45 billion in 2026, as the social media heavyweight continues to spend heavily on AI. However, analysts forecast Meta's free cash flow to increase to $111.7 billion in 2030. This FCF expansion should enable Meta to raise the annual dividend from $2.1 per share in 2025 to $3.81 per share in 2030. In this period, its payout ratio should improve from 54% to just 8.6%."
Meta reported Q4 earnings of $8.88 per share on $59.9 billion in revenue, exceeding analyst expectations, with revenue up 24% year-over-year and advertising contributing $58.1 billion. The company generated $14.1 billion in free cash flow and held $81.6 billion in cash and marketable securities versus $58.7 billion in debt. Free cash flow is forecast to decline to $10.45 billion in 2026 amid heavy AI and infrastructure spending, then rise to $111.7 billion by 2030. Forecasted FCF expansion supports projections of annual dividends rising from $2.10 in 2025 to $3.81 in 2030.
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